https://www.taxtmi.com/caselaws?id=9285 Relief under section 25(4) of the Indian Income-tax Act, 1922, depends on a true succession to the earlier business, not a mere discontinuance. Succession requires a change of ownership with substantial continuity of the business, and no formal transfer is necessary if the overall transaction shows that the later firm took over the earlier concern. The dissolution of the former firm was not conclusive. On the surrounding material, including continuity of trading activity, income-tax records, common partners, appointment letters, and arrangements for old liabilities, the later firm was held to have succeeded to the earlier business. Relief under section 25(4) was therefore allowed. en-us Sat, 17 Nov 1973 00:00:00 +0530 Sun, 21 Jun 2009 17:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9285 Relief under section 25(4) of the Indian Income-tax Act, 1922, depends on a true succession to the earlier business, not a mere discontinuance. Succession requires a change of ownership with substantial continuity of the business, and no formal transfer is necessary if the overall transaction shows that the later firm took over the earlier concern. The dissolution of the former firm was not conclusive. On the surrounding material, including continuity of trading activity, income-tax records, common partners, appointment letters, and arrangements for old liabilities, the later firm was held to have succeeded to the earlier business. Relief under section 25(4) was therefore allowed. Case-Laws Income Tax Sat, 17 Nov 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9285